Broadband and i2010:
The importance of dynamic competition
to market growth
SPC Network's latest analysis of the relationship between broadband competition and take-up shows that it is a dynamic relationship. Changes in market structure drive growth rather than the absolute levels of concentration.
Viviane Reding, the new EU Commissioner of Information Society and Media, has recognised the importance of broadband competition to achieving her new i2010 agenda to promote competitiveness and productivity in Europe. She has said that she will be looking at the policy instruments available to her to promote broadband competition.
In this paper we provide further evidence of the relationship between broadband competition and take-up. We find that it is not the absolute levels of competition that drive take-up but rather the changes in market structure: a more dynamic market leads to faster growth.
